Full cost model
As of the beginning of 2009, the Academy of Finland as well as Finnish universities and government research institutes have used the so-called full cost model. The full cost model applies to most of the funding granted by the Academy and it affects the way in which funding applications and funding decisions are made, how funding is used, and how the use of funds is reported.
How the full cost model is applied at the application stage:
- Before submitting an application, the applicant shall agree with the site of research on the tangible support that the site of research is to provide for the project. On the form, applicants are requested to give an overall cost estimate and a funding plan for the project. Applications are written so as to ensure that the Academy’s contribution to funding (entered on the online form) comes to no more than 70% of the total costs of a project (as of the September 2012 call).
- In their applications, applicants give the percentage for indirect employee costs, the overheads percentage, and the coefficient for effective working hours applied by their own organisation at the time of application submission. Calculations in accordance with the full cost model rely on these coefficients. Applicants shall check these coefficients from the administration department at their own organisation. The organisation will supply the coefficient for effective working hours to be used in applications to the Academy, calculated on the basis of the average effective working hours.
- The representative of the site of research who gives a commitment on behalf of the site of research is required to ensure that the percentages for indirect employee costs and overheads, and the coefficient for effective working hours given in the application are approved by the site of research and makes a commitment to them in giving the online commitment by the site of research.
More information on the full cost model